that would be a little too punishing to loose everything (even in minecraft you can retrieve your items). loses durability is fine, or losing xp would be fine too.
In the current version, when the item hits 0 durability it is gone forever.
Like many things, this is the first version of the death penalty. We’ll refine it as we add more features.
I’m familiar with the old death tax, temporary stats penalty, xp earning penalty and xp loss (de-leveling). So if we need to add more penalties we’ll see what fits and feels fair.
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I hope not 
Losing all your inventory items can be game-quitting level frustration if you decided to be dumb and go caving and not remember your path.
The threat of losing all your items adds excitement, but when it actually happens, it leads to unfun outcomes (at least, every time I’ve been dumb and done that)
Sure! That’s why on every adventure you go, you should think about what to carry with you from your homebase. I like that “difficulty level”… Makes you walk around more carefully. What I at the moment do as well.
I’ve also been dumb done that 
but that actually is gameplay changing! Care becomes a lot more important.
But well, that’s opinion exchange.
Yeah - dunno, there’s a reason not many people opt for perma-death when there’s a choice. This seems like a less extreme version of that
Well if the majority likes it, it’s better for the game to get more players.
But maybe on some worlds it could have these rules to make them more difficult? (if a separation of those laws is possible on different worlds)
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That’d be interesting!
I’ve never been a fan of “old-school” style death penalty like de-leveling, stat penalty, etc. So I’m glad you refrain from implementing it (for now).
However, I also agree with @Smoothy , loosing items in addition to durability sounds quite reasonable to me. Maybe not your entire inventory but something like
Upon death you loose
- 20% of the rubbish (dirt, stone, leaves, etc.),
- 10% of the materials (wood, ore, meat, bone, etc.)
and- 5% of the rare materials (gleam, titan & monster loot, etc.)
in your inventory.
This would also give you an opportunity for some interesting perks in the Explorer skill tree 
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I know all of the minecraft veterans are used to total inventory loss on death, as well as deleveling and gear drops, but man, not even Dark Souls is that harsh on death penalties! I’d opt for a percent currency loss (in addition to durability damage) over inventory loss, in the style of Diablo games.
Also in the style of Diablo, I’d suggest a 5 second respawn invulnerability to get out of harms way, but you can not attack, place blocks, or use items.
Additionally, I’d suggest if a creature kills a player in combat, it should return to full hp. (Assuming that creature is not locked in combat with multiple players, and exits combat). That helps ensure players don’t graveyard rush tough fights to overcome them with sheer tenacity.
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Also, it’s worth noting that we’re generally comparing death penalties to single player games, which generally have much lower time investment costs for the items you gather
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I’d love to see this as well but it would require something like a “piggy bank” prop to store your spare coin, as long-time players usually tend to accumulate ridiculous amounts of currency.
But we already had this discussion almost a year ago, concluding with these statements from james, which, at least as I interpret them, suggest that something like this not out of the question entirely (but not likely either).
(though, note that he explicitly said that this is his personal opinion)
So I guess it’s up to how much time they want to invest into the death penalty and it’s peripheral features.
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An idea I’ve come across for the death penalty is when you die, you lose stats/exp/whatever and an orb appears near where you died. If you can get back to that orb and absorb/use it you get most of your stats/exp/whatever back, but if you die before doing so then they are gone and you need to re-earn them.
This would fit well with the losing durability and respawning near where you died mechanics, as if you respawn in the middle of combat with decreased stats it would be fairly difficult to get the orb (say in a boss fight) but if it is just in a dungeon the rest of your party could clear out the monsters so you can respawn safely.
I think having the respawn take a longer amount of time if combat is going on nearby would make sense too.
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Finally!
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Oh jeez, I almost forgot about star maps! It was a pretty long time ago, and im glad to see that their still a thing 
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Star maps eh? I wonder.
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As death tax is brought up again I am just going to leave this around here:
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The image shared above doesn’t reflect the implementation coming. Don’t expect a galaxy map.
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Star maps could be pretty cute, but living worlds in the night skies is epically awesome!
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Would I correct in assuming that the player xp thing is going to be career based, so if you’re a warrior you’ll gain experience that levels up warrior type skills and that that wouldn’t make you any better at say, blacksmithing?
I know it’ll be a while before the system is fully implemented, but if this is the case, I think it would increase the number of players that opt for crafting/retail as a play style (and subsequently increase the number and variety of shops in towns) to also require specialization in subclasses that cause a differentiation between say a weaponsmith, toolsmith, and jeweller.
If players need only to develop a superclass that would allow crafting all items, I believe the possibility for a single dedicated player to monopolize an industry would be inevitable.
Edit: There would still need to be a system that allows some skill transference. For instance, if jewellery making, toolsmithing and weaponsmithing were all subclasses of blacksmithing, and blacksmithing was a subclass of general crafting, then if you make a sword that would grant you 100 xp for weaponsmithing, you’d also gain 10 xp each for jewellery making and toolsmithing and 1 xp for general crafting.
On a different note,
I guess this is one way to do it, though, I always liked the idea of players setting up respawn points.
Venturing out to the most dangerous and forsaken areas of the world, knowing that there might be no respawn point anywhere remote and being able to set one up as a lone outpost of civilization in the wild for other players to use (for some coin ofc ) sounds just way more exciting and engaging than just popping up right next to your corpse like in an arcade game…
However, I do realize that this, just as a ‘coin death penalty’, would require peripheral props like a placable respawn point/beacon thingy.
At least you would have already fixed the potential exploit of ‘respawn traps’ with the
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